Judgment

K. JAGANNATHA SHETTY, J.:- The question of law which is concerned in this  appeal is whether in the circumstances of the case, the appellant ("Bank") was required to act as agent of the respondent or as bailee in respect of goods entrusted for delivery to the respondent against payment.

2. In 1945 the respondent was carrying on the business of wholesale and retail dealership in textile yarn and cloth at Agartala and in the .course of that business he was appointed as a Government nominee to indent for and lift the quantities of cloth and yarn to Agartala from different mills situated in Bengal, Bombay, Ahmedabad and other places.

3. For the purpose of that business, the respondent had maintained Current Account No. 391 with the Agartala Branch of the United Commercial Bank Limited which has since been styled as UCO Bank, the appellant in this appeal.

4. The case of the respondent-plaintiff was that there was an oral agreement with the Bank on September 2, 1950 under which the latter inter alia was to receive bills, documents and air receipts sent by or on behalf of the plaintiff from his agents or suppliers and would release and/ or take delivery of goods sent by them, as and